WASHINGTON-The United States and the European Union have agreed to recognize each other’s testing and certification of wireless and wireline telecom products, a breakthrough officials say will save manufacturers $1 billion a year by eliminating unnecessary duplication.
In all, the package of Mutual Recognition Agreements struck just more than a week ago covers $50 billion in two-way trade of telecommunications and electromagnetic compatibility products and goods in several other major industry sectors. The accord allows U.S. and EU products to be assessed in each’s respective country for conformity to the other’s standards.
“The MRA is yet another example of the administration’s push to open markets in sectoral areas where the United States leads the world, while assuring our absolute right to choose our own health and safety standards,” said Charlene Barshefsky, U.S. trade representative.
The agreement removes a potential impediment to the global agreement to phase out tariffs on telecom and information technology products by 2000. A World Trade Organization agreement will allow unlimited foreign investment in telecom carriers effective Jan. 1.
“Completion of these mutual recognition agreements has been a longstanding priority of the United States and the European Union,” said William Daley, secretary of Commerce. “I want to give credit to the TransAtlantic Business Dialogue. The TABD said the MRA was important; we heard them and acted.”
Reed Hundt, chairman of the Federal Communications Commission, said the MRAs “will allow telecommunications and information technology companies to be assured that their equipment obtains access to foreign markets without regulatory delays and at reduced cost.”
In other trade matters, President Clinton last week said he will seek legislation in Congress to expand trade between the United States and Africa in telecommunications and other industry sessions.
“An Africa that is gaining vitality while technology, trade, communications and travel are bringing millions into the global economy is a continent of greater stability, growing markets, stronger partners,” said Clinton.
The White House announcement followed complaints by some members of Congress and an African advocacy group that the Summit of the Eight meeting in Denver, which Clinton was to attend late last week and weekend, did not include an African leader.
